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What’s the Key to Bitcoin Mining Success?

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If you’re like most people, when you first learned that Bitcoin and cryptocurrency had value and that anyone could mine for Bitcoin; you considered mining it yourself. Who doesn’t want to create something out of nothing? Who doesn’t want free money?

Just like the old days when people mined for gold and precious metals in the wilderness; who’s gut instinct wouldn’t be to go grab some gold while everyone has a chance to score it?

However, just like people don’t discover gold in the wilderness much anymore; mining for Bitcoins has started to become more difficult. In the beginning, people could mine for Bitcoin using a home computer and a little special equipment. They could easily make a good profit after paying for electricity and equipment. Nowadays, the cost of equipment and electricity is often too much for the average person.

Can Bitcoin Mining Turn a Realistic Profit?

As the cost of Bitcoin rises up to $8,000 per coin, more people are showing interest in mining than ever before. However, mining isn’t as simple as it once was. There are several ways to invest in Bitcoin mining. Most of them aren’t profitable. There are also many scams. Fortunately for investors though, there is one way to turn a profit.

Cloud Mining Might Not be All it’s Cracked Up to Be

Because it’s not as easy to mine for Bitcoin in your home as it used to be, many people have turned to cloud mining companies in the hopes of being able to invest in Bitcoin from a distance.

When you work with a cloud mining company, you don’t have to use your own electricity, invest in your own hardware or worry about selling hardware later if you get out of Bitcoin mining. However, most hosted mining, virtual hosted mining and leased hashing power companies are either scams or don’t yield profits for investors. This investor complained of receiving .0004 Bitcoin after investing .01.

Bitcoin Cloud Mining

Genesis Mining has a reputation for being a reputable company. However, it’s hard to determine whether investors are receiving much in the way of profits.

In Home Mining

Surprisingly, the best way to earn money with Bitcoin mining is still to mine for your own coins. However, the initial investment is nothing to sneeze at.

Tech Cashhouse reviewed several Bitcoin miners ranging in price from $50 to $1600. He based his study on:

  • Bitcoin being valued at $6,000 per coin,
  • An average electricity rate of .13 cents USD per kilowatt hour, and
  • A .5% pool fee

The only miner that turned a worthwhile profit was the Antminer S9, the most expensive miner out of the bunch.

The profit was $3,745 per year and you would break even, (on the $1600 you shelled out for the machine), within 155 days.

In addition, you could add solar and wind turbine power to your operation to possibly save on your electric bill; increasing your profits even further. However, keep in mind; though Bitcoin is a digital asset, when you mine, your profits are taxed as income.

The Antminer S7 also turned a profit. However, the profit was only $8.87 per year. The machine costs $800 and it takes over 5000 days to break even.

Pioneers Get Out Your Pans

The good news is that the gold rush is still on folks! A profit of several thousand dollars per year really isn’t bad. However, as you can see, it’s possible that the gold rush won’t last for long. Every year, the cost to mine for Bitcoin increases.

However, for every industry involved with cryptocurrency, getting in now is a great idea. We’re still on the ground floor. However, the early bird advantage might not last the decade.

Sally
Online Forex and Cryptocurrency Trader who has been involved in the industry for almost 5 years. Keep calm and Hodl!

2 Replies to “What’s the Key to Bitcoin Mining Success?

  1. HI Sally. I saw a Bitcoin miner that was just released called the dragonmint. Many people are saying that is could be an effective alternative to the bitmain miners. Even one of the main developers at blockstream has said so. What do you think?

    1. The dragonmint is a great product. While there is still a great deal of testing that need to take place before one can be certain of the benefits, I can say for certain that you could do well to start with this product

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